Cathie Wood Goes Bargain Hunting: 3 Stocks She Just Bought

Last year was huge for ARK Invest CEO Cathie Wood. Her penchant for disruptive growth stocks helped her ARK Invest family of exchange-traded funds (ETFs) soar in 2020. Wood’s universe of growth stocks corrected sharply earlier this year but her funds are making a comeback these days…

Wood did a lot of shopping on Tuesday, buying into some stocks that are trading well below their previous highs. She added to her existing positions in Roblox (NYSE:RBLX)Coinbase Global (NASDAQ:COIN), and Teladoc Health (NYSE:TDOC), three promising stocks fetching 27% to 51% less than they were just a couple of months ago. Let’s take a closer look at why these are names that Wood likes here.

Roblox

Roblox operates a fast-growing virtual destination where its mostly young members play games, earn rewards, and explore user-created 3D realms. It went public in March. Growth is explosive — and accelerating. Roblox has seen its revenue go from growing 56% in 2019 to 82% in 2020. Revenue exploded 140% higher in the first quarter of this year.

There were 43 million users by the end of March, up 37% over the past year. A lack of profitability is a concern, but Roblox continues to improve its ability to monetize its platform. Wood was trimming her Roblox position in early June, but she’s been buying back the stock in recent weeks.

Coinbase

Another recent IPO that Wood has been buying aggressively is Coinbase. The leading cryptocurrency marketplace may have timed its debut poorly. It went public in April, just as the leading cryptocurrencies were peaking. It’s been a rough run for crypto, but digital currencies are moving higher for the second week in a row.

Coinbase has proven magnetic for crypto traders. Revenue rose 845% in the first quarter of this year, and — no — that’s not a typo. Wood buying shares of Coinbase is becoming…

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